ComparaSave.com Offers Tips to Avoid Car Insurance Rate Increases

Share Article

For most Canadians, car insurance is a major expense, especially when if the rate increases each year. Insurance companies increase rates for many reasons and ComparaSave.com has the inside scoop and tips to avoid rate increases.

car insurance rate increases and tips to avoid premium increase
Some of the most common reasons for premium increases are obtaining a traffic violation or being involved in an at-fault car accident.

An increase in car insurance premiums is caused by many factors - some very well know, while others come as a surprise to many Canadians. “Some of the most common reasons for premium increases are obtaining a traffic violation or being involved in an at-fault car accident," says Tammy Ezer of ComparaSave.com. These top factors are the most common for a car insurance rate hike.

Traffic Violations.

Receiving a traffic ticket will generally result in an increase in rates, and there are a wide variety of offences that can cause this increase. The severity of the violation typically has a direct impact on just how high the premium can go. The most common traffic violations for which drivers see insurance rates rise are speeding, running a red light, and failure to obey traffic signs such as stop signs.

Not all traffic violations will result in an increase; each insurance company can determine their own rules for this. Odds are good, however, that most moving violations will impact rates. Following all posted signs and rules of the road is the best way to avoid tickets and keep insurance quotes low.

At-Fault Car Accidents.

Even in a no-fault province, fault will still be assigned in any accident. The driver who is found at fault will generally see an insurance rate increase, but when fault of the accident is split between the drivers, it’s possible for both drivers to see an increase.

Generally, this increase will show up on renewal, and will follow the driver to another insurance company. Still, an at-fault accident is not charged the same way at every company, so lower insurance quotes can be located by shopping around.

If the driver purchased accident forgiveness coverage, a rate increase typically will not occur for the first at-fault car accident.

Buying a New Car.

Each car is rated differently, but it may surprise many drivers just how much their rate increases when a new car replaces an old one. Some cars, especially luxury cars and sports cars, cost more to repair and are thus more expensive to insure. When an older, less valuable car is replaced with a new one, the rate increase can seem very high.

To avoid a surprise, it’s always best to get car insurance quotes on new cars when buying a new car rather than waiting until the car has been purchased to find out what the cost will be. This is also a great time to shop around for rates as that new car may be rated better elsewhere.

Moving to a New Home or New Job.

Both where a car is parked at night and the commute distance driven each day can have an impact on rates. It may surprise drivers that moving to a new postal code can increase insurance costs – as can a longer daily commute. These things are often unavoidable, but that doesn’t mean settling for a high rate.

A rate increase for this reason is easily avoided by shopping around for a better rate. Because every insurance company sets their own rates, and both home location and commute are areas where rates differ, most drivers will have luck finding a better rate by searching when they receive a rate increase for these reasons.

Some rate increase can’t be avoided, but many can be resolved by shopping around for car insurance quotes. Drive safe, and know when to seek a better deal on insurance.

About Comparasave.com

ComparaSave.com is a digital marketplace dedicated to helping Canadians save money by providing the lowest insurance and mortgage rates, as well as credit card and holiday comparisons, from a network of over 40 providers. Launched by Insurance Hotline, ComparaSave.com has partnered with insurance companies and brokers, mortgage professionals, credit unions and other financial institutions to ensure consumers get a fast, free and easy-to-use service. ComparaSave.com is a division of Insurance Hotline.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Cathy-Anne O'Brien
BlueSky Communications
416.929.2506
Email >

Tara Bolger
BlueSky Communications
416.929.2052
Email >
Visit website